Try the questions in the test above first, then open each one here to see the correct answer and why every other option is wrong.
01In which year was the Saudi Arabian Monetary Agency, today's Saudi Central Bank, established?
Practice question Unit: The Banking System in Saudi Arabia
A1966 (1386H)
1966 belongs to the Banking Control Law in the chapter's chronology. The monetary agency had already been established in 1952.
B1932 (1351H)
The establishment decree is dated 1371H, corresponding to 1952. The earlier date 1351H does not identify that institutional event.
C2020 (1442H)
In 2020 the name changed to Saudi Central Bank under Royal Decree M/36. Renaming the existing institution was separate from its founding.
D1952 (1371H) ✓ Correct answer
SAMA's history dates its establishment decree to 20 April 1952, or 25/7/1371H. This is the founding date, rather than a later banking-law or naming milestone.
Reference: Financial Academy, Individual Finance Fundamentals, Basic Level, second edition (May 2025), Chapter 1, printed p. 6 (PDF p. 7). https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf; SAMA, Our History. https://www.sama.gov.sa/en-US/About/Pages/SAMAHistory.aspx
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02According to the curriculum, which objective of the Saudi Central Bank Law underpins SAMA's organisation of lending programmes for individuals and enterprises?
Practice question Unit: The Banking System in Saudi Arabia
ASetting zakat and income-tax rates
Setting tax or zakat rates is not one of the three objectives listed in Article 3. The relevant objective is economic growth, alongside monetary and financial stability.
BLicensing listed companies on the exchange
Exchange-listing permissions do not describe the Article 3 objective asked about. The curriculum connects organising finance with support for economic growth.
CSupporting economic growth ✓ Correct answer
Article 3(3) names support for economic growth as an objective. The curriculum connects organised finance for individuals and enterprises with that broader economic purpose.
DFinancing the state's annual budget deficit
Funding a government deficit is different from supporting growth. Article 6(3) of the Central Bank Law prohibits financing and extending loans to the government.
Reference: Financial Academy, Individual Finance Fundamentals, Basic Level, second edition (May 2025), Chapter 1, printed p. 7 (PDF p. 8). https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf; Saudi Central Bank Law, Royal Decree M/36, 26 November 2020. https://www.sama.gov.sa/en-us/about/pages/bank-law.aspx
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03A customer has a high gross salary, but existing debts and basic living costs leave little money each month. Which measure is central to assessing affordability?
Practice question Unit: Governing Legislation for Retail Finance
AThe value of the customer's car
A car’s value may be relevant to collateral, but it does not establish cash available for monthly payments. Existing debts and living costs still need to be assessed.
BThe customer's length of residence in the city
Length of residence is not a measure of money available to repay debt. The assessment needs verified financial resources and obligations rather than time spent in the city.
CThe customer's net disposable monthly income ✓ Correct answer
Assess disposable monthly income with basic expenses and all credit obligations taken into account. A high gross salary or compliance with a ratio ceiling alone does not establish affordability or satisfy all lending conditions.
DThe number of products the customer already holds
The number of products does not show their payment amounts or the customer’s remaining resources. Analyse the amounts owed and living costs rather than using a product count as the affordability test.
Reference: Financial Academy, Individual Finance Fundamentals, 2nd ed. (May 2025), section 2-4-4, printed p. 23 (PDF p. 24). https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf SAMA Responsible Lending Principles for Individual Customers, paragraph(s) 10–11; governing Arabic: https://rulebook.sama.gov.sa/ar/مبادئ-التمويل-المسؤول-للأفراد-0
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04Under Article 9 of SAMA’s Guide to Financial Institutions Services Fees, what is the maximum administrative fee, excluding VAT, for SAR 800,000 of non-real-estate consumer finance?
Practice question Unit: Governing Legislation for Retail Finance
ASAR 2,500 ✓ Correct answer
For non-real-estate finance, 0.5% of SAR 800,000 is SAR 4,000; the lower SAR 2,500 ceiling applies. The guide states the maximum excluding VAT, so do not substitute the mortgage ceiling.
BSAR 8,000
SAR 8,000 is 1% of the amount. That uses the wrong percentage for non-real-estate finance and also exceeds the applicable fixed ceiling.
CSAR 4,000
SAR 4,000 is the 0.5% calculation before applying the fixed maximum. The rule requires the lower of that result and SAR 2,500.
DSAR 5,000
SAR 5,000 is the fixed ceiling in the separate mortgage row. Product classification matters: the transaction here is expressly non-real-estate consumer finance.
Reference: SAMA,Guide to Financial Institutions Services Fees,Article9,financing-services rows35–36;maximum fees excludeVAT. https://rulebook.sama.gov.sa/en/guide-financial-institutions-services-fees
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05Which description fits consumer microfinance under current Article 9(1), including its vehicle exclusion?
Practice question Unit: Providers of Financing Services
AFinance for non-business consumption such as household goods or education, excluding vehicle purchases ✓ Correct answer
Article 9(1)(a)–(c) combines consumption purpose, separation from business or professional use, and an express vehicle exclusion. Household goods or education can fit without overriding that exclusion.
BFinance for productive equipment used by a craftsman’s business
Productive business equipment has a business purpose. That differs from the non-business consumption condition in this provision.
CFinance for a developer’s commercial housing project
A developer’s commercial project is not the household-consumption category. Calling it housing does not convert business finance into consumer microfinance.
DFinance for buying personal vehicles merely because they are not used for business
Personal use does not cancel the explicit exclusion of vehicle purchases in Article 9(1)(c). The curriculum’s contrary vehicle example must not be applied.
Reference: Current Finance Companies Implementing Regulation Article 9(1)(a)–(c) — https://rulebook.sama.gov.sa/ar/node/10698
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06How does the curriculum briefly define real-estate finance?
Practice question Unit: Retail Finance Products
AFunding a developer to build a commercial tower
Developer and commercial funding is not the individual product defined here.
BGranting credit for a customer to own a home ✓ Correct answer
It is credit granted so the customer can own a residence, i.e. money from a licensed financier to acquire a residential unit.
CLeasing equipment to a business owner
Equipment leasing to businesses falls under finance lease.
DBuying land to trade it for a profit
Speculative land trading is not home ownership finance.
Reference: Financial Academy, Individual Finance Fundamentals curriculum, 2nd ed. (May 2025), section 4-1; Real Estate Finance Law (Royal Decree M/50, 1433H). https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf
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07Who counts as an individual finance customer in the curriculum?
Practice question Unit: Individual Buyers
AAny resident who holds a salaried government job
Employment type is not the definition.
BA Saudi national aged twenty-one or more
Nationality and that age are not the test.
CA person with financial and legal capacity ✓ Correct answer
The individual customer is a person, male or female, with recognised financial and legal capacity.
DA person who already holds a bank loan
Holding a loan is not required.
Reference: Financial Academy, Individual Finance Fundamentals curriculum, 2nd ed. (May 2025), section 5-1. https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf
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08Which three main responsibilities does the curriculum assign to the retail finance specialist?
Practice question Unit: Professional Competencies
APricing products, collecting arrears, legal action
Pricing and legal action are not the specialist's listed duties.
BFinal credit approval, auditing, compliance
Final approval steps sit with the credit adviser and other units.
CGuidance, closing the deal, administrative support ✓ Correct answer
The specialist's role is summarised as guidance and direction, closing the deal, and administrative support.
DProduct design, treasury management, risk modelling
These are head-office functions, not front-line duties.
Reference: Financial Academy, Individual Finance Fundamentals curriculum, 2nd ed. (May 2025), section 6-1. https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf
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09How does the curriculum summarise Islamic finance after reviewing several definitions?
Practice question Unit: Islamic Finance
ALending money at a fixed rate approved by a scholar
A fixed lending rate is interest-based, whatever its approval.
BAny finance offered by a bank in a Muslim country
Location of the bank does not make finance Islamic.
CObtaining money for lawful uses per Sharia aims ✓ Correct answer
It concludes Islamic finance is a way to obtain money to spend on lawful purposes according to Sharia objectives and fiqh procedures.
DCharitable grants given without any repayment
Islamic finance includes trade and partnership, not only grants.
Reference: Financial Academy, Individual Finance Fundamentals curriculum, 2nd ed. (May 2025), section 7. https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf
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10Which description best captures digital financial inclusion?
Practice question Unit: Financial Inclusion
AResponsible, affordable access to and use of financial services through digital channels, including for underserved people ✓ Correct answer
Digital delivery is part of the concept, together with useful, affordable and responsible services. Enabling legislation helps, but legislation alone does not establish access or actual use.
BMoving all bank branches onto online channels
Moving every branch online is a distribution decision, not proof of inclusion. People can still be excluded by cost, connectivity, skills or unsuitable products.
CIssuing a credit card to every adult citizen
Issuing a credit card to everyone does not meet every financial need and can create unsuitable debt. Inclusion also involves payments, savings and other appropriate services.
DLending to fintech firms at a subsidised rate
A subsidy for fintech firms is one possible policy instrument. It does not by itself show that underserved users can safely obtain and use suitable services.
Reference: Financial Academy, Individual Finance Fundamentals curriculum, 2nd ed. (May 2025), section 8-1-1. https://cdn.fa.gov.sa/facdn-container/FAST/production/exams/profiles/b2ee2af9-01db-42ea-a99a-af5400aa280f/3dfe769c-a545-4fe1-82bf-b31600f76626-1.pdf; https://www.worldbank.org/ext/en/topic/financial-sector/financial-inclusion
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